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Avoid These 3 Mutual Fund Misfires - December 20, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Templeton Growth R (TEGRX - Free Report) : 1.31% expense ratio and 0.68% management fee. TEGRX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With a five year after-expenses return of 0.96%, you're mostly paying more in fees than returns.
Lord Abbett Inflation Focused R2 (LIFQX - Free Report) : 1.08% expense ratio, 0.3%. LIFQX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.57% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
ProFunds Biotech Ultra Sector Service Class (BIPSX - Free Report) - 2.52% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.97% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Baird Midcap Investor (BMDSX - Free Report) is a winner, with an expense ratio of just 1.06% and a five-year annualized return track record of 10.79%.
MFS Growth Fund R2 (MEGRX - Free Report) : Expense ratio: 1.16%. Management fee: 0.55%. MEGRX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. MEGRX has managed to produce a robust 13.93% over the last five years.
Fidelity Advisor Small Cap Growth I (FCIGX - Free Report) : Expense ratio: 1.06%. Management fee: 0.84%. FCIGX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. FCIGX has produced a 14.27% over the last five years.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
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Avoid These 3 Mutual Fund Misfires - December 20, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Templeton Growth R (TEGRX - Free Report) : 1.31% expense ratio and 0.68% management fee. TEGRX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With a five year after-expenses return of 0.96%, you're mostly paying more in fees than returns.
Lord Abbett Inflation Focused R2 (LIFQX - Free Report) : 1.08% expense ratio, 0.3%. LIFQX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.57% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
ProFunds Biotech Ultra Sector Service Class (BIPSX - Free Report) - 2.52% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.97% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Baird Midcap Investor (BMDSX - Free Report) is a winner, with an expense ratio of just 1.06% and a five-year annualized return track record of 10.79%.
MFS Growth Fund R2 (MEGRX - Free Report) : Expense ratio: 1.16%. Management fee: 0.55%. MEGRX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. MEGRX has managed to produce a robust 13.93% over the last five years.
Fidelity Advisor Small Cap Growth I (FCIGX - Free Report) : Expense ratio: 1.06%. Management fee: 0.84%. FCIGX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. FCIGX has produced a 14.27% over the last five years.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.